Reddit Users Gave Large Hedge Funds A Run For Their Money & Here’s How Netizens Reacted


Reddit Users Became Large Hedge Fund's Nightmare And Here's How Netizens Reacted FI

You might have heard the words like ‘GameStop’, ‘Reddit’, and ‘Large hedge funds’ a lot in the past couple of days. And it’s okay to be confused. We were too.

So, what’s been happening?

Up until a month ago, GameStop was a struggling chain of video game retail stores in the states. But suddenly, the shares of GameStop surged from $19 on December 31st, 2020, to $197.84 on January 27th.

Yup, a difference of $178.84 in 27 days. That’s crazy!

Reddit Users Gave Large Hedge Funds A Run For Their Money & Here's How Netizens Reacted

Wired

As GameStop was not doing well and their stock was super low, they hired some new board members. And the stock prices went up. That’s when well-known hedge funds like Melvin Capital and Citron Research got interested in GameStock shares.

They decided to “short” GameStop stocks to make a lot of money. But people of Reddit decided to have some fun. They bought a lot of stocks and inflated the price of GameStop shares. The large hedge fund lost so much money that they filed for bankruptcy.

Here’s a longer, detailed explanation if you really want to know the whole deal.

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What are your thoughts?

Also read: Man Threw Away Hard Drive Worth $280 Million In Bitcoins, Now Offers $70 Million To Retrieve It

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